Bridge Loans

What is “Bridge” Financing?

We feel it is important to understand what bridge financing represents and what type of borrowers and clients borrow bridge loans and why. Goodfellas work with lenders who lend their own money as well as investors’ money through since 2001. The lenders we work with, have extensive experience in underwriting, lending, specialty asset management, and servicing of mortgage loans. Since the 2009 financial crisis, banks have spent more time focusing on loan compliance rather than lending.

Heavy compliance has left many voids in the marketplace, because banks can no longer make common sense decisions – even with loans that have significantly lower leverage to lend to a borrower. A common example of this, is a credit score that lies outside of their guidelines… or the way an individual’s income is calculated.

Bridge loans are meant to be a short-term answer to lending, and are typically for 6 – 24 months to allow a client to properly prepare for a bank take out loan.

Bridge loans (Also known as hard money or rehab loan) are loans that are funded by private parties to help close a real estate transaction quickly. Property investors will use these funds to purchase real estate with the goal of fixing and eventually selling for a profit or renting out a unit to maximize cash flow.

Bridge loans are typically loans that most traditional lenders will not touch due to several factors relating to the borrower or property conditions. Therefore a bridge loan is perfect for borrowers who do not want to deal with the traditional lenders bureaucracy and underwriting guidelines.

How can Goodfellas help me get pre-qualified for a hard money loan?

It’s really simple. All you have to do is complete the loan application, and an agent will contact you to go over all your options.

Bridge Loan Application

How long does it take to close the loan?

A loan can close in as little as 5 to 10 days. Each transaction is handled on a case-by-case basis. If there is a special requirement, we may be able to accommodate you but tell us up front what you need in order for our team to be prepared to handle your specific request.

Loan Terms

1st and 2nd Trust Deeds ( Mortgages)

Minimum Loan

One Hundred Thousand ($100,000 USD)

Maximum Loan to Value:

No more than 70% of lender’s accessed value.

Types of Property / Maximum Loan to Value

  • Non-owner-occupied residential real estate (65% Maximum LTV)
  • Apartment buildings (70% Maximum LTV – providing DSCR requirements are met)
  • Commercial (60% LTV)
  • Fully entitled land in Class A & B locations for residential and apartment development (50% LTV)
  • Fix and Flip Loans (Up to 80% of Cost with 65% ARV – Fund Control Required)
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